IHS: YouTube Diversifying Premium SVOD Business Model

To address rising competition in the advertising market, IHS Markit claims Google-owned YouTube is diversifying its business model by rebranding and expanding its YouTube Premium subscription service and other measures to raise revenue.

Content monetization methods outside of advertising will help to deliver higher revenue to content producers, keeping them loyal to the platform and by extension, their audiences, according to IHS. Examples include paid individual channel subscriptions, an integrated merchandise store and the recently expanded and rebranded YouTube Premium subscription.

YouTube’s competition is increasingly coming from specialist platforms, such as Twitch and Instagram. Apple iTunes is also drawing from the population of music-video viewers who have traditionally helped differentiate YouTube from its ad-supported competitors.

The current markets for YouTube Premium, excluding the music-only tier, are expected to generate revenue of nearly $2 billion in 2022.

“To date, online video advertising growth has been fueled by the movement of advertising budgets, particularly from traditional TV – a rising tide that has lifted all the major platforms,” said Dan Cryan, executive director of digital media, IHS Markit. “At some point, this budget migration will slow, however, and the battle for audiences will be intensified as a battle for ad spending.”

Revenue generated by YouTube Premium in 2022 equates to 7% of the $27 billion the company is expected to make worldwide from advertising. Nearly three-quarters (73%) of YouTube Premium subscription revenue will come from the United States, followed by Europe (13%), Asia-Pacific (6%), and Mexico and Canada (9%).

“The YouTube Premium subscription leans into its position as a music platform, to drive uptake and expand its offer,” said Max Signorelli, home entertainment research analyst for IHS Markit, “a well justified move considering the exceptional growth of Spotify and Apple Music subscriptions, which between them gained 3.5 million subscribers per month in the first quarter of this year.”

YouTube Teases Space Thriller ‘Origin,’ Orders Season 2 of ‘Impulse’

YouTube at Comic-Con on July 19 teased the intergalactic space thriller “Origin” during a panel at the show attended by the series creators and moderated by BuzzFeed’s Marcus Jones.

The 10-episode series, from director Paul W.S. Anderson and the producers of “The Crown” ​and “Outlander,” ​follows a group of outsiders who find themselves abandoned on a ship bound for a distant land. Now they must work together for survival, but quickly realize that one of them is far from who they claim to be.

From Left Bank Pictures and Sony Pictures Television, “Origin” stars ​Tom Felton (​”Harry Potter” film franchise, ​Rise of the Planet of the Apes​) and ​Natalia Tena (​”Harry Potter” film franchise, “Game of Thrones”). The cast also includes an international roster of talent including Sen Mitsuji, Nora Arnezeder, Fraser James, Philipp Christopher, Nina Wadia, Madalyn Horcher, Siobahn Cullen, Adelayo Adedayo and Wil Coban.

“Origin” is created, written, and executive produced by Mika Watkins. The series is executive produced by Andy Harries, Suzanne Mackie, and Rob Bullock from Left Bank Pictures, alongside Josh Appelbaum, André Nemec, Jeff Pinkner, and Scott Rosenberg from Midnight Radio, and Paul W.S. Anderson.

The series launches on YouTube premium in the fall of this year.

Also at Comic-Con, YouTube announced that it has ordered a second season of the acclaimed supernatural thriller “Impulse” from Universal Cable Productions (UCP). Since its debut on June 6, the first episode of “Impulse” has generated nearly 8 million views. Season 2 of the 10-episode, hour-long series will premiere on YouTube Premium in 2019.

In Season 1 of “Impulse,” Maddie Hasson stars as Henrietta “Henry” Cole, a rebellious 16-year-old girl who has always felt different from her peers and longs to escape from her seemingly quaint small town. During a traumatic event, Henry discovers she has the extraordinary ability to teleport, and her newfound power confirms Henry’s conviction that she really was different from everybody else – but it now makes her the focus of those who want to control her.

“Impulse” is directed and executive produced by Hypnotic’s Doug Liman (Bourne​ Identity, Live. Die. Repeat: Edge of Tomorrow​). David Bartis and Gene Klein, who produce UCP’s hit series “Suits” on USA Network and SYFY’s “Nightflyers,” also serve as executive producers. Lauren LeFranc (​”Agents of S.H.I.E.L.D.”​) is the series’ ​showrunner and executive producer.